What is the level of production price and total profit per

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Reference no: EM13321692

A firm faces the following average revenue (demand)

curve: P = 120- 0.02Q

where Q is weekly production and P is price, measured in cents per unit. The firm"s cost function is given by C = 60Q + 25,000.Assume that the firm maximizes profits.

a. What is the level of production, price, and total profit per week?

b. If the government decides to levy a tax of 14 cents per unit on this product, what will be the new level of production, price, and profit?

Reference no: EM13321692

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